RUMFORD – A spokesman for Calpine Corp., parent company of the gas-fired power plant off Route 108, confirmed Thursday that the corporation is in financial difficulties and is looking at a variety of restructuring opportunities.
John Flumerfelt, director of government and public affairs, said from the company’s central office in San Jose, Calif., that although the firm has not filed for bankruptcy, “it is possible it is under potential consideration.”
He said he doesn’t foresee any plant closures or employee layoffs.
The local plant employs 17 people. Managers at the plant did not return calls Thursday.
Calpine Corp. also owns a plant in Westbrook and partially owns the Androscoggin Energy Center LLC plant in Jay. Statewide, Calpine employs about 50 people. Nationwide, the corporation owns 92 gas-fired or geothermal power plants employing about 3,000 people, Flumerfelt said.
The Jay plant filed for bankruptcy protection in late 2004. Flumerfelt said the plant has not been running because of a dispute with International Paper.
The Jay energy plant had supplied energy to the paper company.
At the Rumford plant, the 265 megawatts produced annually have gone onto the New England power grid.
On the corporate level, Flumerfelt said some of the management positions have changed in recent days. According to the Calpine Web site, Robert May, a former executive with HealthSouth and Charter Communications, was named Calpine’s new chief executive officer on Monday. Several board members have also resigned.
Flumerfelt said much of the corporation’s financial difficulties were caused by several new power plants currently under construction in the United States, and one plant recently completed and about to start-up in Ontario during a difficult economic climate.
The Rumford power plant was built by Energy Management Inc., based in Tiverton, R.I., then sold to Calpine. The plant started up in 2000 and was granted tax incentive financing by the town.
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